EU clears Masdar’s takeover of Greek company Terna Energy

Masdar passed the main hurdle in the agreed acquisition of Greece-based Terna Energy as it obtained a green light from the European Commission. The company headquartered in the United Arab Emirates is now awaiting approval from regulators in Poland to proceed with the first phase of the purchase. It sees the proposed transaction as a springboard into Central and Eastern Europe.

The European Commission said it approved the acquisition of sole control of Terna Energy Industrial Commercial Technical by Abu Dhabi Future Energy Company – Masdar of the United Arab Emirates. The transaction would not raise competition concerns, given the companies’ limited market positions resulting from the proposed transaction, the announcement adds.

In the first phase, the green energy giant from the UAE would buy a 64.7% stake in Terna Energy, which is expected in November. According to the takeover agreement, the next step is an all-cash public offer. The Greek media reported it would likely occur early next year.

Masdar’s deal now only hinges on a regulatory clearance in Poland, where Terna Energy is also active. The Greek firm, part of the GEK Terna conglomerate, is present in Bulgaria as well. With the purchase, Masdar expects to gain a foothold for expansion in Central and Eastern Europe. It has entered the Balkans a decade ago with a wind power project in Serbia. The deal was agreed four months ago.

The company is owned by state-controlled Abu Dhabi National Energy Co. (Taqa), sovereign wealth fund Mubadala Investment Co. and Abu Dhabi National Oil Co. (Adnoc).

Terna Energy expects to add 550 MW by end-2025

According to Terna Energy’s website, its operating portfolio amounts to 1.23 GW, of which wind power accounts for 98%. The company runs 531 turbines in 74 facilities. It generated a total of 2.6 TWh last year. At the last close on the Athens Stock Exchange, EUR 19.53 per share, Terna Energy was 35.9% higher than one year ago.

The company, also called Tenerg, expects to add 550 MW by the end of next year, out of its overall portfolio of 11 GW.

Albania’s KESH to establish joint venture with Masdar

As for the Western Balkans, Albanian Prime Minister Edi Rama expects state-owned power utility KESH to establish a joint venture with Masdar. After meeting the UAE’s Minister of Industry and Advanced Technology Sultan Ahmed Al Jaber, he said they would invest in Albania and the region.

Rama added a deal is underway for Albania, the UAE and Italy to install an undersea power interconnection between Albania and Italy. Al Jaber is also Masdar’s chairman. The project is valued at EUR 1 billion.

Masdar has launched a joint venture partnership with Romania’s state-owned Hidroelectrica as well. The two companies are considering a floating solar power project.

Serbia is considering the possibility of formalizing the cooperation with Masdar through a bilateral agreement, Minister of Mining and Energy Dubravka Đedović Handanović said last month.

Terna Energy’s parent group GEK Terna recently completed a gas power plant in a joint venture with MORE

Among other relevant developments, Terna Energy’s parent group GEK Terna launched a trial operation of the Thermoilektriki Komotinis gas-fired power plant of 877 MW in gross capacity. It is a 50-50 joint venture with Motor Oil Renewable Energy (MORE).

The facility in northern Greece was built by Terna SA, the conglomerate’s construction arm. The start of commercial operation is expected in the first quarter of next year. The project is worth EUR 375 million.

The gas power plant has a strong ramp-up and ramp-down capability, 85 MW per minute. Its technical minimum is 240 MW.